City Hall Options Presentation Sept28 2011

8/4/2019 City Hall Options Presentation Sept28 2011

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Options Analysisfor City HallCity of London

Finance and Administration Committee Presentation

September 2011


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CB Richard Ellis | Page 2

Agenda

1. Purpose of presentation and overview

2. Additional Input: Key Findings Education Partnerships - Examples Service Delivery Network City Hall Space Requirements

3. Options4. Conclusion


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Purpose of the Presentation

Report on City Hall options presented to Council inFebruary 2011 - Council requested additional

consultation

The following themes have emerged (DowntownSummit, Mayors Economic Prosperity Council): Need for a transformational project downtown

Partnerships are important education a major theme A new City Hall development can be an anchor for the

Downtown Master Plan and evolving vision of the riverfront

City administration has been investigating new optionsfor service delivery to the community, including: Business Enterprise Centre Service London Decentralization of Community Services Municipal Utility Corporation


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Overview

The University of Western Ontario (UWO) hasemerged as a potential partner, with interest in a

downtown presence on the current City Hall site Options previously presented to Council may no

longer be relevant this presentation describes whatoptions are available to accommodate:

UWO on the current City Hall site The Citys emerging service delivery model

We will lay out an option which proposes to: Move City Hall to a new custom designed building - smaller

than the current building

Continue use of a leased portfolio (fewer locations) toaccommodate the Citys evolving service delivery model in a

flexible manner, based on a decentralized requirement


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Additional Input: Key FindingsPartnerships with Education: Examples

Service Delivery Network

City Hall Space Needs


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Examples of Education Partnerships

A number of cities have recently announced

partnerships with educational institutions - manypositioned as a magnet for downtown redevelopment: Wilfrid Laurier: School of Social Work in Kitchener,

Campus in downtown Brantford University of Waterloo: School of Architecture in

Cambridge, School of Pharmacy in Kitchener McMaster University: Downtown Health Campus in

Hamilton University of Windsor: Visual Arts and Music

Programs to a downtown Campus


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City of London

Utilities

Hydro

Community and

Social Services

CountyHealth UnitProvince

Consumer ServicesService LondonService Ontario

Business Services

Enterprise Centre

LEDCProvince

Arts and Culture

Library

MuseumCommunityorganizations

Service Delivery Partner Network

Serving the community better - design the service model first..

the real estate solution follows.



City Hall Space Requirements

The model for City Hall 2011 and beyond has twocomponents to be housed:

The Seat of City Government: the core

Services to Londoners: including virtual City Hall

and partnership arrangements

Engineering

Planning

SPS

Utilities

Business

Services

Corporate Support

CommunityServices

(Ont. Works)

Elected Officials

CAO

Clerk

LegalFinance

Core

Community

Services(Other)

SPS Special Purpose Space(ie. Cafeteria, storage, etc.)



Location and Building Requirements

We need to accommodate approx. 329,000 square feet:

City Hall the Seat of Government

Approximately 118,000 square feet in a new building Public gathering space Institutional presence, reflecting civic pride and stewardship Increased parking requirement

The service network:

Decentralized portfolio of approximately 211,000 square feet in ownedand leased buildings (fewer locations than currently occupied)

Based on customer and partner needs Supplements virtual service delivery channels

The decision focuses on the commitment to thecore requirement, with an investment plan

Balance of the portfolio will be rationalized over time, based onService London requirements and individual business cases



Options



Options

Three options were presented previously to Council

Assuming that UWO is accommodated on the CityHall campus, Options 1 and 2 are no longer valid

Option #1: Base CaseContinue occupancy of

City Hall and leased

locations

Keep and

renovateCity Hall

Option #2: Expand CityHall

Expand City Hall overReg. Cooper Square

Option #3: NewConsolidated City HallConstruct new facility;consolidate operations

Dispose ofexistingCity Hall



Options

Option 3 has been refined:

UWO occupies the City Hall site

New City Hall incorporates the concepts of a core /

virtual City Hall


City Hall and leased

locations

Keep and

renovateCity Hall





Option #4: New City Hall(Core Only)

Construct new facility(smaller than current) and

consolidate leasedlocations

Options no

longer validIf Universitys

proposal ispursued



Option 4: New City Hall Core Only

Option 4 New City Hall (Core only):

Vacate City Hall site Build a new building to accommodate the Core (Seat

of Government) requirement i.e. a smaller City Hallthan previously considered

Consolidate the Service Delivery portfolio into fewerleased/owned sites to accommodate: Enterprise Centre Service Ontario/ Service London

Community locations for Community Services/Ontario Works



Option 4: New City Hall Core Only

Option 4 New City Hall (Core only):

Pros: New purpose designed building with appropriate civic presence

and interior and exterior public spaces smaller (and lowercapital cost) than option 3

New and efficient interiors, with optimized sustainability in theCore building

Balance of the portfolio rationalized based on service andcustomer needs, optimized portfolio cost structure

Flexibility (through leasing) to meet changing service deliveryneeds (and supports the health of the downtown office market)

Cons: Loss of the legacy civic site

Risks: Limited number of sites Financing and investment plan needed



Options

In the event that Council does not proceed with furtherdiscussion with UWO then consider Option 5:

Proceed with City Hall renovations

Consolidate the leased portfolio into fewer locations


City Hall and leasedlocations

Keep and

renovateCity Hall





Option #5:Current City Hall withRationalized PortfolioContinue occupancy ofrenovated City Hall andfewer leased locations



Cost Comparison of Options

$94.1 $94.1 $94.1 $94.1

$58.8$35.8

$3.6

$0

$40

$80

$120

$160

$200

Base Case New Consolidated City Hall New City Hall (Core Only) Current City Hall with Rationalized LeasePortfolio

(Millions) 20-year NPV Cost

Base Case Premium

TOTAL $94.1

TOTAL $152.9

TOTAL $129.9

TOTAL $97.7

Option 1 Option 3 Option 4 Option 5



Size of Core City Hall

Split between core City Hall and other space is

shown below (total requirement approx. 329,000 SF):

168,339 SF

266,708 SF

118,202 SF

168,339 SF

160,802 SF

62,433 SF

210,939 SF160,802 SF

0 SF

50,000 SF

100,000 SF

150,000 SF

200,000 SF

250,000 SF

300,000 SF

350,000 SF

Base Case New Consolidated City Hall New City Hall (Core Only) Current City Hall with Rationalized

Lease Portfolio

Area of "Core" Building Area of Other Locations

CAPITAL SPEND

$2.7

CAPITAL SPEND

$3.5

CAPITAL SPEND

$13.0

CAPITAL SPEND

$5.7

CAPITAL SPEND

$28.4

CAPITAL SPEND

$140.4

CAPITAL SPEND

$75.9

CAPITAL SPEND

$28.4

Option 1Option 3 Option 4

Option 5

Total Capital: $31.1 M Total Capital: $143.9 M Total Capital: $88.9 M Total Capital: $34.1 M



Conclusion

In the event that Council wishes to pursue discussions

with UWO, then Option 4 is appropriateIn the event that the City remains on the current site,

Option 5 should be considered

S


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Next Steps

Assuming a go decision for Option 4, request staff to

come back to Council with an implementation plan toaddress:

Define project governance

Required resources, including a financing strategy

Detailed work plan Real estate and investment requirements

Proposed procurement approach

Communications plan and consultation process

Co-ordination with business cases for relatedinitiatives

Documents

City Hall Options Presentation Sept28 2011